How to Beat Wall Street (It's Easier Than You Think)
Money Guy Show
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Understanding Investment Risk
This chapter explores the concepts of risk tolerance and capacity in investment strategies, focusing on the emotional and mathematical aspects of risk assessment. Listeners learn about various metrics used to evaluate portfolio risk, including beta, standard deviation, Sharpe ratio, and Sortino ratio, while comparing the performance of different portfolios. The discussion concludes with insights on how asset allocation impacts risk and return, encouraging smarter investment decisions.
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